Workers’ Comp Billing System Update

BWC is changing the way it bills for workers’ compensation coverage to better serve Ohio employers.

For decades, the agency has billed for employer premiums after-the-fact. It will begin billing in advance of coverage starting July 1, 2015 for private employers and Jan. 1, 2016 for public employers. This change will align BWC with standard industry billing practices.

Due to the switch to prospective billing, a number of deadlines for plan and program sign-ups will change in coming months. Among them is the snapshot date for experience calculation: for private employers, that date is Sept. 30. For public employers enrolling for the 2016 policy year, it will be March 31, 2015.

Reminder – our current billing process remains in effect until July 2015, so don’t forget to pay premiums as usual by Sept. 2.

Here’s a breakdown of key date changes in coming months:

Group experience rating: Nov. 24, 2014 for private employers and May 29, 2015 for public employers

Destination: Excellence: May 29, 2015 for private employers and Nov. 30, 2015 for public employers

Benefits of prospective billing include reduced overall systems costs for the agency, and in turn, an expected overall base rate reduction of two percent for private employers and four percent for public employers. It will give BWC an increased ability to detect non-compliance and fraud, which will lead to long-term savings. Also, more flexible payment options will be available with prospective billing – up to 12 installment payments instead of semi-annual billing.

The transition won’t cost Ohio employers any extra money. BWC will provide a one-time, $1.2 billion premium credit to eliminate the need for double payments during the transition.

If you have questions about prospective billing, call your local BWC service office or email our prospective billing mailbox.

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